Question You Are Considering Buying An Industrial Equipment

Last updated: 12/18/2023

Question You Are Considering Buying An Industrial Equipment Whose Price 260000 The You are considering buying an industrial equipment whose price 260000 The equipment is expected to earn an annual revenue of 150 000 The equipment will be depreciated under MACRS as a five year recovery property The equipment will be used for seven years at the end of which time you can sell it for 50 000 Your company s marginal tax rate is 35 over the project period Perform the following a Determine the net after tax cash flows for each period over the project life b Net present worth assuming company MARR 15 c Annual equivalent cash flow company MARR 15 d IRR of the project